FGC gets analyst coverage & recommendationFGC gets analyst coverage & recommendation "strong buy"
https://www.jenningscapital.com/pdfs/FGC09132007InitiatingCoverage.pdf
(See link above for a better and more complete display, including graphs, of the report shown below.)
FIRSTGROWTH EXPLORATION & Recommendation: STRONG BUY
DEVELOPMENT SERVICES CORP. 12-Month Target: C$1.30
(TSXV-FGC C$0.75) Risk Rating: ABOVE AVERAGE
INITIATING COVERAGE
FULL-WAVE SEISMIC: A PARADIGM SHIFT IN
RESOURCE EXPLORATION & DEVELOPMENT
FirstGrowth’s wholly-owned subsidiary, Kinetex,
provides digital seismic services to the oil and gas
and mining industries.
The Company offers full-wave 3-component digital
seismic services. Digital seismic measures both
conventional pressure waves and shear waves. This
provides as much as 300% improvement in fidelity
over conventional 3D seismic.
Unlike conventional seismic, digital full-wave seismic
can assist in distinguishing between oil, gas, rock
and water underground. It provides comprehensive
information on rock types, porosity, permeability,
stratigraphy and fracture geometry and intensity.
By providing a much higher fidelity picture of the
subsurface environment than previously possible,
digital seismic enables significant reduction in drilling
risk. Due to its role in developing the technology,
FirstGrowth has proprietary deployment knowledge
and software applications for the use of digital
seismic.
FirstGrowth is one of a small handful of companies
deploying digital seismic for mining exploration and
development. Successful applications thus far have
included diamonds, uranium, coal, gold and base
metals.
Customers of FirstGrowth’s digital seismic have
included Korea National Oil Company’s oilsands
project, HudBay, Winspear/DeBeers, Shoregold,
Cameco, Hathor Explorations, Harvest Energy Trust
and the Geological Survey of Canada.
The Company has grown the top-line from
$5.0 million in 2005, to $9.3 million in 2006, and
achieved revenue of $9.5 million for the first half of
2007. We project this revenue ramp-up to continue
and estimate $18.2 million for the full year 2007,
$39.6 million in 2008 and $51.5 million in 2009.
Our valuation is based on a 5-year discounted cash
flow model. We are initiating coverage of
FirstGrowth with a STRONG BUY recommendation
and 12-month target price of $1.30 per share.
Sector: SPECIAL SITUATIONS
Analyst: LINDA LEBRUN, CFA
e-mail: linda.lebrun@jenningscapital.com
Tel: (416) 304-2193 Fax: (416) 214-0177
FirstGrowth Exploration & Development Services Corp. is an oil,
gas and mineral exploration services company focused on the
organic growth of its subsidiary, Kinetex Inc. In addition,
FirstGrowth's goal is to make acquisitions in the resource services
sector accretive to Kinetex's current seismic imaging services